The term "restricted stock" typically refers to stock that is granted by an employer to compensate an employee. Restricted stock typically vests in portions over a period of several years. There are also restrictions to whom the stock can be transferred until the restrictions are lifted. For example, Microsoft has an extensive employee restricted stock program, as an alternative to granting employee stock options. Alternatively, the term "restricted stock" also refers to shares of stock that are subject to restrictions on transfer and must be transferred in compliance in with SEC regulations.